During industrial revolution there was an increased demand for financial capital in order to realize major industrial enterprises thus the public limited companies came to existence. At the end of the 19th century the public limited company got a competition in the form of limited liability company, which is much easier to manage. One of the basic characteristics of the capital company is that the company members do not vouch for the liability of the company with their own assets. Because of that, in order to prevent the misuse of exclusion of liability of the members, the institute of breach of legal personality was introduced, which is regulated by the Act on commercial companies so that in case of misuse it does not exclude the liability of the company members for the liabilities of the company. The novelty in Croatian legal system is the simple limited liability company, which is limited liability company with certain specialties. Some of the features are quicker and much easier process of founding with much less initial capital.